We have heard this controversy before and it is coming to a head in Nevada. 44 states require net metering, which forces utilities to buy excess residential solar at retail rates. Utilities are fighting back and may be winning in Nevada. Why should they pay retail instead of wholesale and pass the costs along to their other customers?
Under the proposal , Nevada will create separate rate classes for small commercial and residential net-metering customers “to ensure no cost-shift to other ratepayers.” Further, any excess power generated will be compensated at the wholesale market rate.
Solar customers will also see an increase in their fixed charges “to reduce inequities among non-metering customers.”
The draft is up for a vote Tuesday. If passed, the measure will go into effect Jan. 1.
Vivint Solar CEO Greg Butterfield called the measure “an unfortunate step backward for Nevada and the solar industry.”
“If the Nevada Public Utilities Commission accepts this decision, the state of Nevada will lose jobs, economic output and consumer choice, while protecting the interests of an entrenched monopoly, NV Energy and its out-of-state owner Berkshire Hathaway Energy,” Butterfield said in a statement.
SolarCity CEO Lyndon Rive said the measure would “destroy” Nevada’s rooftop solar industry. Recently, California regulators decided against slashing net-metering payments to solar customers.
In Nevada, “the decision would retroactively sabotage the investments Nevadans have already made in solar, even though they were encouraged by their government to make those investments,” he said in a statement.
Both CEOs said their companies would pull Nevada operations should the commission pass the net-metering mandate.
Read More At Investor’s Business Daily: http://news.investors.com/technology/122215-786448-activist-…
If this becomes widespread, SEDG prospects change. Keep watching.